DeFi

Planet

Security

Billion

<div class="intro-text">
 Chinese authorities have uncovered a massive illegal underground banking network valued at $1.9 billion allegedly using cryptocurrencies in its operations to evade scrutiny after a two-year investigation, according to<a style="color: #0000ff;" href="https://mp.weixin.qq.com/s/JAD9WLy3Iw1E9zXxR4e_Nw?poc_token=HB-XRWajjXW6ijLFVjLWFGd8Pb_fpgEAJw_pHhE-" rel="noopener noreferrer nofollow"> local reports</a>.&nbsp;
</div>
Authorities have arrested 193 suspects nationwide in connection with this case and frozen assets worth 149 million yuan (about $20 million). The group, headed by individuals with the last names Lin, Weng, and Chen, allegedly operated an illicit scheme that exchanged foreign currencies using USDT.&nbsp;
The Chengdu Municipal Public Security Bureau reportedly claimed the underground operations began in January 2021 and were involved in smuggling medicine, cosmetics, and investment assets overseas. They noted that they became aware of the illegal activities in November 2022 and immediately set up a task force to investigate them. Throughout 2023, in collaboration with the Chinese Ministry of Public Security, they were able to bust the crime gang and arrest suspects across 26 provinces in the country.
This revelation comes after another case in Jilin province, where authorities, <a style="color: #0000ff;" href="https://mp.weixin.qq.com/s/R2oG8dQF77G_ufxElDMJ2A" rel="noopener noreferrer nofollow">according to local reports</a>, discovered an underground bank using cryptocurrency for money exchanges. Six people were arrested, including suspects from South Korea, and over 2.14 billion yuan ($295 million) was involved.
The Chinese government <a style="color: #0000ff;" href="https://www.bbc.com/news/technology-58678907?" rel="noopener noreferrer nofollow">banned</a> cryptocurrencies, digital asset exchanges, and Bitcoin mining operations in the country since 2021. However, the ban has not deterred the local population from finding alternative ways to engage with crypto assets.
A report by Kyros Ventures <a href="https://asiareport.kyros.ventures/" rel="noopener noreferrer nofollow">revealed</a> that Chinese traders are among the largest holders of stablecoins globally. 33.3% of investors hold various stablecoins, second only to Vietnam’s 58.6%.
Following the Bitcoin mining ban, China’s hash rate contribution to the Bitcoin network <a style="color: #0000ff;" href="https://www.cnbc.com/2022/05/18/china-is-second-biggest-bitcoin-mining-hub-as-miners-go-underground.html?" rel="noopener noreferrer nofollow">dropped from the largest to the second largest</a>. Chinese traders also shifted to decentralized exchanges after the ban on centralized exchanges. Some reportedly resorted to using virtual private networks (VPNs) to bypass the ban.
&nbsp;
If you want to read more news articles like this, visit <a style="color: #0000ff;" href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a style="color: #0000ff;" href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a style="color: #0000ff;" href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a style="color: #0000ff;" href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a style="color: #0000ff;" href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, and <a style="color: #0000ff;" href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
The post <a href="https://defi-planet.com/2024/05/chinese-authorities-bust-1-9-billion-illegal-crypto-banking-network-arrest-193-suspects/" rel="noopener noreferrer nofollow">Chinese Authorities Bust $1.9 Billion Illegal Crypto Banking Network, Arrest 193 Suspects</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Chinese Authorities Bust $1.9 Billion Illegal Crypto Banking Network, Arrest 193 Suspects

DeFi Planet

Other articles published on May 16, 2024

BREAKING: Coinbase Lists Three Surprise Altcoins in Futures

FTX repayments could create ‘bullish overhang’ for crypto markets — K33 Research

Tapping into the Future: Stellar and the Rise of Mobile Payments

Shiba Inu Whale Activity Crashes, But Cardano Volume Jumps 90%, What’s Going On?

Bitcoin Falls Below Key Threshold

Pump.fun platform on Solana faces potential exploit

Join our free newsletter for daily crypto updates!